JCPenny charges $799 for a premium Xbox 360 package

Over at Joystiq, they have this story showing JCPenny charging a whopping $799 for a premium Xbox 360 pack. That's right. No extra games. No extra peripherals. Just the Xbox 360 premium package. A person even called customer service and was told it was a corporate decision. Is JCPenny that hard up for cash that they need to double the price of the Xbox 360?? Is this even legal?